THE country’s inflation rate is seen to ease further in the coming months, the Department of Finance (DOF) said, while adding that there is a need to ensure that supply chains during this period of expanded community quarantine (ECQ) is not disrupted.
“Core inflation in April was 2.8 percent, down from more than three percent in March, indicating easing inflation in the next few months,” the DOF said in its latest economic bulletin released in a statement over the weekend.
“Still, it is important that in this time of ECQ, the supply chain of basic goods and other necessary items, while subject to the requirements of public health, should not be broken,” the DOF added.
In a previous statement, Karl Kendrick Chua, socioeconomic planning secretary, also underscored the need to continue government efforts to keep the supply and price of essential commodities stable, especially with the extension of ECQ in high-risk areas in the country.
“We need to ensure supply chains are not disrupted. We also need to beef up our efforts to boost agricultural production in the near term to ensure a sufficient supply of key food items in the domestic market,” Chua said.
“This entails, among others, accelerating the implementation of the Rice Competitiveness Enhancement Fund to help rice farmers improve productivity in the next planting season,” he also said.
He added that national government will actively engage the private sector and local government units to ensure the seamless flow of essential goods in quarantine areas.
“We encourage investments in post-harvest facilities, cold storage, and logistics support for perishable goods to reduce product wastage brought about by reported delays in transport of goods in ECQ checkpoints,” Chua said.
Chua also emphasized the need to closely monitor other significant factors that may affect the country’s near-term inflation rate. These include risks from the African Swine Fever, weather-related disturbance in agriculture when the rainy season starts, and higher import price during the COVID-19 pandemic as global supply chains become constrained.
